From: The Global Warming Policy Forum

By: John Constable and Capell Aris

Date: May 2021

REALISM OR UTOPIANISM? A proposal for reform of Net Zero policy

Summary

"This paper calls for root and branch reform of the UK’s Net Zero pathway to avoid intolerable cost and societal disruption. The alternative route proposed is a Gas to Gas-Nuclear programme.

As a matter of urgency, electricity generation policy must refocus on dispatchable low-emissions plant, which can deliver a secure and competitive electricity system as an enabler for the UK’s manufacturing industries.

The resulting lower electricity prices will facilitate some limited electrification of domestic and commercial heating and mobility, with potential for longer-term decarbonisation in transport and heating to be investigated via a medium-term nuclear programme, including the generation of hydrogen from high temperature reactors via the thermal decomposition of water.

The action points for reform are:

• Remove market distortions and reduce consumer cost without delay, by buying back all subsidy contracts to renewables at a discount, compelling them to operate as pure merchant plant, and institute a rolling program for closure of the wind and solar fleets to reduce system operation costs.
• License rapid construction of high-efficiency combined cycle gas turbines, perhaps fitted with carbon capture and sequestration (CCS) if this proves economic. A variety of new approaches to gas turbines – for example Allam cycle turbines, may soon deliver zero-carbon electricity much less expensively.
• Use low-cost government debt to finance a new generation of nuclear plant, ideally of smaller scale than those currently envisaged.
• While reduced electricity costs will encourage adoption of heat pumps and electric vehicles where economic, the government should investigate the use of high-temperature nuclear reactors to generate hydrogen to provide an alternative option, seeking close co-operation with the Government of Japan, which is already steering in this direction.

Current UK policies will struggle to deliver Net Zero by 2050, or ever, and run a high risk of deep and irreversible societal damage. Because of the harms already inflicted, the programme outlined here cannot meet the government’s timetable either, but it will reduce emissions rapidly and sustainably without destabilising British society, leaving the option for further emissions reductions as technological development makes this feasible and economically attractive. It therefore represents a realistic rather than a utopian decarbonisation model.

On the other hand, failure to reform along these lines will result in extreme costs, painful reductions in living standards for all but the richest, national weakness, societal instability and the eventual failure of the decarbonisation effort. The UK’s hoped for climate leadership will become only a stern deterrent." (continue reading)

REALISM OR UTOPIANISM? A proposal for reform of Net Zero policy